Why I'd fill the heating oil tank...

Keeping an eye here to heating/stove oil pricing and I'm thinking that NOW might be a good time to top the tank off and here's the reasons why...

While spot pricing for heating/stove oils dropped back the past couple of weeks, pricing for heating/stove oils have rebounded slightly in the face of possible OPEC cuts that are coming in the next two days.
Spot prices have, in fact, reached a point where any more upwards volitility may lead to early interruption of prices to the important winter commodity. The last three days average a 1.8 cent a litre increase but it's the last business day that is alarming. Yesterdays trading price was 3.6 cents over my month-end fix of 48.10 cents a litre.
Two more good days where heating/stove oil trades up and the possibility is there for interruption of pricing.
That means you'll get to pay a little more for it...

While the numbers could trade down enough in the next day or so enough to prevent early interuption of pricing, that doesn't mean that they'll head downwards.
Au contraire!...
Remember...We're now into the winter heating/stove oil demand season and there are enough conditions out there that warrant close watching by the consumer.
1) Possible OPEC cuts to production.
2) Draws on inventory, or lower than expected production of heating/stove oils.
3) Colder weather. That'll be enough to increase demand ahead of refineries going through the changes to produce heating/stove oil-what they like to call "maintenance".
4) The winter demand season. Because the product is in need at this time of the year, prices have the tendency to rise along with the season.

If Interruption happens, look for the possibility over the next few days as the OPEC news breaks and the markets swallow what they'll tell them and translate that into news the companies like to hear, an increase in pricing to come.

That's it from me for now,

Regards,

George Murphy
Group researcher/Member
Consumer Group for Fair Gas Prices
gasprices@hotmail.com